Nifty Futures 6th March 2018
Nifty Futures today continued its consolidation between the range of 10637-10276 with an negative bias and ended the day lower. It is very important to note that post the sharp selloff that took place from 29th Jan 2018 Nifty has been consolidating in this range with some bullish days and some sharp bearish days but overall has remained within the range of 10637-10276 spot Nifty levels mentioned till now. In the coming days there could be some more volatility in the offering before the main trend resumes but as per our astro cycle and time cycle analysis we do not see much time remaining for the main trend to resume sure it could take a few more trading days but not much time is remaining as Nifty has now spent almost one month between 10274-10637 spot Nifty levels. As per our Nifty Futures analysis we do not see any major upside sustaining for now or near term but at the same time please keep in mind that pullbacks will keep coming from time to time and trading in and out will be the best thing to do for the time being and we have been trading in and out in our STBT trades and holding on to positional shorts at the same time so we are trading the near term moves through the STBT trades while we are playing the larger wave through the positional trade. Post this sideways consolidation we do expect the Indian Stock Market and the global stock markets to resume the main trend. So it will be prudent to be very alert as once the main trend resumes we could see sharp trending move in the Indian stock market. From an immediate perspective Nifty spot breaking below 10260 will open the gates for much lower targets and those lower side targets of Nifty will be achieved in no time which simply means that the next round of fall could be as sharp as the one we have seen starting from 29th Jan 2018 but till 10276-10260 on spot Nifty hold till that time we could just keep consolidating within this area. From the open interest data we see that most people have been averaging their long positions which have been purchased at higher levels but we do not feel that’s the right strategy for the time being because the overall trend remains down for now and until the present wave ends it will be prudent not to average longs which have been purchased at higher levels. So the next important question is when will this current ongoing wave end ? Well we will keep guiding our clients on that and If someone is currently stuck in long positions then what to do with them will also be told but for now we do not feel that this is the right time to average long positions which are stuck from higher side levels.
From an astro cycle perspective there are many important changes coming up and that in turn could affect markets. To start with Jupiter has just gone retrograde and mars will also be changing house shortly so we could see both these changes and some other astro signatures in the near term playing out.
Part of what we recommended to our clients.
3/5/18, 9:09 AM – Glen Drago: Gm
3/5/18, 9:09 AM – Glen Drago: Hold positions as told
3/5/18, 9:09 AM – Glen Drago: If anything to do will update
3/5/18, 9:16 AM – Glen Drago: Nifty stbt trade book 1st part between 10350-10330 spot Nifty levels mentioned.
3/5/18, 9:38 AM – Glen Drago: Stbt trade book at cmp
3/5/18, 9:38 AM – Glen Drago: Confirmation stbt trade booked at cmp
3/5/18, 9:38 AM – Glen Drago: Nifty hold positional shorts 4 parts as told
3/5/18, 9:38 AM – Glen Drago: If anything else to do will update
3/5/18, 11:59 AM – Glen Drago: Nifty continue holding 4 parts positional shorts as told
3/5/18, 11:59 AM – Glen Drago: If anything else to do will update
3/5/18, 12:33 PM – Glen Drago: Will keep updating if we have to do anything
3/5/18, 12:33 PM – Glen Drago: As of now just relax
3/5/18, 3:01 PM – Glen Drago: Indian bond yield has been consistently moving higher Making classical higher tops and higher bottoms this simply means that Reserve Bank of India will be forced to start moving rates higher and much faster than most people on the street are expecting it to. This in turn will increase the cost if capital for industry which inturn will affect bottom line of companies and that will surely have lot more negative impact than what people are expecting in terms of earnings from companies. We do not feel that there is any significant pick up in the corporate earnings that will be reported in the coming earnings season and hence at such hefty valuations we do not advise any buying from a medium term perspective even though some mid cap companies have fallen 20-40 Percent from their all time high that they hit in Jan 2018
Good Trading To You!